Micron Electronics Introduces Dual Pentium II Processor-Based Midrange and Workgroup Servers.

ATLANTA--(BUSINESS WIRE)--Oct. 8, 1997--Networld+Interop 1997--

--Midrange MV5000 Delivers I2O(R) technology, RAID and High

Availability Features for Price of Basic Server--

Micron Electronics, Inc. (NASDAQ:MUEI), a leader in the direct PC channel, today introduced two build-to-order Pentium II processor-based servers for corporate network applications. The midrange NetFRAME(R) MV5000 offers enterprise-ready features, such as intelligent I/O (I2O) and integrated RAID, for the price of a basic server. The entry level NetFRAME LV2000 is an aggressively priced dual Pentium II processor-based server. The new servers complement the company's award-winning, high-end NetFRAME NF9000 series servers, allowing Micron to offer corporations a complete line of best-of-class network servers from the workgroup to the enterprise.

Based upon Intel's MB440LX server platform, the NetFRAME MV5000 and NetFRAME LV2000 combine the performance benefits of dual Pentium II processors, with the expandability and scalability benefits of an integrated intelligent I/O subsystem, based upon the Intel i960(R) RD I/O processor and dual Symbios Logic PCI Ultra-SCSI controllers. This platform provides up to seven PCI slots, integrated RAID, and all of the hardware required to implement I20 functions, providing users with the highest degree of standards-based I/O flexibility.

The NetFRAME MV5000 is the industry's first network server to integrate a high-performance Intel i960 I/O processor on the server motherboard, providing high-end server features at a midrange price. By off-loading I/O functions and RAID processing from the host processor, the MV5000 is able to provide superior performance, without requiring costly add-in cards. In addition to processor-based RAID and I2O, the MV5000 also features hot swappable power supplies and disk drives, and redundant power and cooling, key high availability features for business-critical enterprise network applications.

The NetFRAME LV2000 is designed for workgroup applications, and combines very aggressive pricing for a dual Pentium II processor-based capable server, with the flexibility of a fully configured hardware, software and service solution. The LV2000 with integrated SVGA video, Ultra Wide SCSI-3 and 10/100Mbps Ethernet interfaces, one 233Mhz Pentium II processor, 32MB ECC RAM, 2GB storage, Windows NT(R) Server 4.0, and LANDesk(R) Server Manager 2.8 is priced at an aggressive $3,499.

Through alliances with leading suppliers such as Microsoft, Novell, 3Com, Adaptec, Mylex, AMI and others, Micron offers fully configured, build-to-order LV2000 and MV5000 systems that are ready to run at the customer's site.

"These new servers position Micron as a premiere full-line, build-to-order server supplier for corporations," said Bulent Erbilgin, Vice President of Server Products at Micron. "By adding a workgroup and department-level/distributed application server to the NetFRAME product family, Micron now has outstanding solutions for a very broad range of corporate applications. This announcement underscores the importance of the acquisition of NetFRAME, and our commitment to the corporate server marketplace. By offering innovative technology for a range of applications, Micron is positioned to move into the top-tier of the server market."

"We're excited that Micron provides Windows NT Server 4.0 as the default network operating system on their new NetFRAME midrange and workgroup servers," said Pat Fox, Group Manager, Personal and Business Systems Group, Microsoft. "Micron's business customers will benefit not only from the easiest and most flexible network operating system but also from the complete Internet and Intranet solutions that are part of Windows NT Server 4.0"

The LV2000 and MV5000 feature Intel's newest line of Pentium II processors, running at up to 300MHz. With high-speed caching and an advanced system bus capable of supporting multiple, simultaneous transactions, the Pentium II delivers increased bandwidth and processing power for data-intensive corporate applications. Plus, Pentium II incorporates MMX(tm) technology, making the LV2000 and MV5000 a compelling solution for multimedia, graphics and 3D applications. The LANDesk Server manager software, which provides system management capabilities, is bundled with both servers.

"We are pleased that Micron is offering corporations high-performance, cost-effective servers based on the Pentium II processor, I2O technology and Intel's i960 processor," said Ron Smith, Vice President and General Manager of Intel's Computing Enhancement Group. "Standards-based technology building blocks are making servers easier to build, use and manage."

The MV5000 is an I2O-ready, dual Pentium II server that features up to 1GB of memory, 10 drive bays for up to 90GB of on-line storage, and up to three 360-watt power supplies. Integrated i960-based RAID, nine I/O expansion slots (six PCI, 2ISA, and one shared) as well as hot swappable, redundant power supplies, disk drives, and cooling provide the reliability and high availability required for business-critical applications, as well as the scalability that corporations demand.

The LV2000 features either single or dual Pentium II processors, each with 512KB integrated cache, integrated Ultra WIDE SCSI-3, SVGA graphics, and 10/100Mpbs Ethernet interfaces, a 12/20X SCSI-2 CD ROM drive, one 3.5" floppy, 10 drive bays and five expansion slots -- four PCI and one ISA. The LV2000 combines a cost effective entry point into the mid-range and workgroup server market, while still offering expandability for the rapidly changing corporate environment.

The LV2000 and MV5000 join the NetFRAME NF9000 series of four-way Pentium(R) Pro processor-based servers designed for high-throughput, business-critical applications. The NF9000 family features a number of unique capabilities in the Pentium Pro processor-based server market, including Hot Plug PCI card slots, a high-throughput triple-peer PCI bus architecture, firewalled I/O, NIC load balancing and failover, and NetFRAME's unique internal monitoring and maintenance system. The NF9008 is designed for large-scale distributed application processing and remote office environments, and features eight individually Hot Pluggable PCI card slots. The NF9016 features unrivaled I/O and storage scalability, and is designed for enterprise-class applications and server consolidation environments.

"The MV5000 and LV2000 are great additions to the Micron NetFRAME server family that round the company's offerings at the department and workgroup levels," said Jerry Sheridan, director and principal analyst at Dataquest. "Dual processor servers represent one of the fastest growing segments of the server market. Both of these new Micron NetFRAME servers are priced and configured competitively, and should fare well among competitors."

Micron Electronics, Inc., and its subsidiaries manufacture electronic products and provide services for a wide range of computing and digital applications. The company develops, markets, manufactures and supports PC systems for consumer, business, government and educational use. In addition, Micron Custom Manufacturing Services, Inc., a subsidiary of Micron Electronics, Inc., provides custom contract manufacturing services to original equipment manufacturers. SpecTek, a division of Micron Electronics, Inc., processes and markets reduced-specification memory components under the SpecTek(tm) brand name. Micron Electronics, Inc., common stock trades on the NASDAQ Stock Market under the symbol MUEI. The Company is majority owned by Micron Technology, Inc. Product information is available by calling 1-800-776-4518 or via the Company's home page on the Internet at http://www.micronpc.com . -0- NetFRAME is a registered trademark and SpecTek is a trademark of Micron Electronics, Inc. Intel Pentium and LANDesk are registered trademarks of Intel Corporation. Windows NT is a registered trademark of Microsoft Corporation. Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies.

CONTACT: Dave & Bairey Communications Micron Electronics, Inc.

Kurt Foeller Denise Smith

415/221-8800 208/898-3900

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